Nebraska is among the top states in “revenue per dairy cow”
Nebraska ranks in the top ten among all states in “revenue per dairy cow”, according to an American Farm Bureau Federation analysis.
Nebraska’s average of $3,941 per dairy cow in 2016 was nearly $230 higher than the U.S. average of $3,712. It also ranked second among all Midwestern states, just slightly behind Wisconsin.
“This study provides more evidence that Nebraska is a great place to milk cows,” said Rod Johnson, Executive Director of the Nebraska State Dairy Association. “We have a winning combination of abundant, high-quality feed and water resources and top-notch producers who work hard to provide their cows with nutritionally balanced diets and proper animal care.”
Another example of Nebraska’s dairy prowess, Johnson says, comes from the National Agricultural Statistics Services, which shows Nebraska’s annual average milk production per cow of 23,500 pounds, which ranks in the top ten states in the nation. Nebraska’s herd is primarily Holsteins, which is the highest producing breed amongst all the dairy breeds.
“While these numbers may surprise some people, they don’t surprise us,” Johnson says. “Nebraska is a good place to milk cows.”
NDA CONGRATULATES ELITE SHOWMAN COMPETITORS
Agriculture and livestock competitions are always fan favorites at the Nebraska State Fair. The grandest competition of all took place over Labor Day weekend as 4-H and FFA champions from all over the state participated in the annual Nebraska Elite Showman Competition. This was the 12th year for the event which is coordinated by the Nebraska Department of Agriculture (NDA) and the Nebraska Rural Radio Association in cooperation with the Nebraska State Fair.
“Participating in the Nebraska Elite Showman Competition is a great honor for 4-H and FFA members to demonstrate their showmanship, interview and leadership skills,” said NDA Director Greg Ibach. “I’m pleased that NDA and our partners are able to coordinate and sponsor events like these to recognize the hard work, dedication and passion that young Nebraskans have for agriculture.”
Elite Showmen competitors must be between 14-18 years of age and enrolled in 4-H or FFA. Counties are able to select only one 4-H or FFA member to represent them to compete at the State Fair. Agricultural business and organizations generously contribute to the contest in order for the winners to receive monetary prizes along with their statewide recognition.
“Programs such as the Elite Showman Competition encourage youth in our state to grow and learn about agriculture from judges and other showmen,” Ibach said. “That spirit of competition is important in agriculture as it is in life to make people stronger and drive them to achieve their goals.”
In this year’s Nebraska Elite Showman Competition, 37 counties were represented.
Competitors are scored on beef, swine and sheep showmanship, as well as interview skills and knowledge via a written test. Along with first, second and third place overall winners, winners are selected for each division. The top overall Elite Showman receives $2,000, the second place finisher receives $1,000 and the third place overall winner receives $500. Division winners are awarded $300 each. All other competitors receive a $50 prize.
The 2017 overall winners were:
1st place overall: Fina Choat from Boone County
2nd place overall: Blake Guenther from Cuming County
3rd place overall: Jennifer Tidwell from Douglas/Sarpy County
The 2017 Elite Showman division winners were:
Swine Showmanship: Lindsi Loos from Sherman County
Sheep Showmanship: Fina Choat from Boone County
Beef Showmanship: Megan Muller from Dixon County
Written Test: Fina Choat from Boone County
Interview: Felicia Knoerzer from Gosper County
Other participants included: Madalynn Welsch (Franklin); Kade Bose (Harlan); John Alfs (Fillmore); Abigail Lutjelusche (Colfax); Kelsay Schlichtman (Jefferson); TaraLee Hudson (Thayer); Chase DeVries (Adams); Cameron Lashley (Red Willow); Blake Bruns (Lincoln); Brock Uhlir (Howard); Abbey Vales (Saline); Courtney Philips (Phelps); Hannah Robertson (Perkins); Blake Wert (Hamilton); Whitney Steckel; (Loup); Karleigh Kleinknecht (Dawson); James Wetovick (Nance); Sophia Lenter (Gage); Caitlyn Walbrecht (Lancaster); Jency Starr (McPherson); Taylor Gregory (Dodge); Cara Wolverton (Seward); Kylie Kempf (Wayne); Shelby Wachter (Washington); Riley Eisenhauer (Frontier); Creighton Hirschfeld (York); Payton Flower (Scotts Bluff); Saige Skalsky (Keith); Mykala Tincher (Buffalo); Grant Romshek (Butler); Ty Groth (Platte).
Agricultural Producers Encouraged to take Survey
Nebraska farmers and ranchers are invited to take a survey about their farm or ranch succession plans. The survey can be completed online at http://go.unl.edu/succession.
The survey seeks to uncover how Nebraska farmers and ranchers are planning for succession or retirement. How retirement would be financed is another key issue being examined. The data collected will be used to design educational materials, website and meetings specific to Nebraska producers.
Allan Vyhnalek, farm succession extension educator; Dave Aiken, agricultural law specialist; and Kate Brooks, assistant professor, the Department of Agricultural Economics at the University of Nebraska-Lincoln are the conducting the survey.
Vyhnalek recently relocated to the department from Platte County Extension. He will provide succession planning support and education to Nebraska farms and ranches. Vyhnalek hopes to use the data collected to plan educational efforts. “When I visit with Nebraskans, I want to use Nebraska data for my transition and succession talks,” said Vyhnalek.
“We hope that Nebraska farmers and ranchers understand the need to participate in the survey so we have correct information. We want to be able to design materials and educational outreach that fit the needs of Nebraskans,” added Vyhnalek.
The survey will take between 5 to10 minutes to complete and participants must be 19 years or older to participate. Anyone with questions can contact Allan Vyhnalek at 402-472-1771 or e-mail at: avyhnalek2@unl.edu.
For more information or assistance, please contact Allan Vyhnalek, Extension Educator, Farm Succession Education for Nebraska Extension. Phone: 402-472-1771 or e-mail avyhnalek2@unl.edu.
Combine Settings for Variable Crop Conditions
Amy Timmerman – Extension Educator
Although generally good, corn and soybean crops are quite variable across Nebraska as harvest season approaches. Spotty rainfall, in many cases too little but in a few cases too much, along with sandy or clay soil spots, and temperature extremes or storms have resulted in varying ear, and bean pod and stalk sizes, both among nearby fields and in some cases within fields or even individual rows. Such variations put a premium on combine adjustment this fall.
Proper adjustment can only be accomplished by taking time to measure and observe grain loss and quality. Combine grain losses can be held to one bushel per acre or less if the crop is standing reasonably well. One bushel loss equals two corn kernels or four soybeans per square foot on the ground. Grain quality is evaluated by inspecting harvested grain in the tank, looking for splits in soybeans, and cracked or damaged seed coats in corn or soybeans.
Losses occurring at the head can be separated from losses of the entire combine by stopping the combine and backing up several feet to look for losses on the ground traversed by the head, but not the rear of the combine. Field studies show 90% of soybean loss and 60% of corn loss typically occur at the head with proper threshing and separating adjustments.
Head
Corn: Ear diameters in some fields are smaller than normal. The gap between deck plates above snapping rolls (1.25 inches in normal conditions) should be narrow enough to avoid shelling kernels on the ear but yet wide enough for stalks to be pulled through without wedging. Stalk roll speed should be matched to ground speed and ear savers (at the bottom of stalk rolls) in good condition to hinder ears bouncing from the head.
Soybeans: Research identifies the cutterbar as most responsible for soybean losses, but reel speed and position, and cross-auger operation can also affect losses. Ensure cutterbar sections are sharp, in register with guard positions, and held firmly against the guard with hold-down clips. The reel centerline is normally about 8-12 inches in front of the cutterbar, with height adjusted so that reel finger tips are no closer than about two inches to the flexible cutterbar when at its highest position. Reel speed index (ratio of peripheral reel speed to combine travel speed) is normally about 1.25 (25% faster reel than ground speed) but may be up to 2.0 (twice as fast) if the crop is severely lodged. If plants are short, cross-auger position on some heads can be moved forward to help pull plants into the feederhouse. The position of the front idler drum of most feederhouse chains is adjustable and should be in the lower position for soybeans (particularly if the crop is short) to help pull in crop.
Rotor and concave
Before harvest, check condition of rotor or cylinder and concave. Level and calibrate rotor position according to the manual or re-zero the concave to the rotor. Start at the lower end of suggested rotor speeds, using only enough speed to minimize threshing loss. Clearance of the concave with the rotor may be narrower than normal for smaller corn ears or shorter/fewer soybean plants. Low yield areas in some fields may keep plant stems green when beans and pods are mature and ready for combine harvest. These conditions require more attention to adjust the aggressiveness of threshing (speed, clearance) for adequate threshing and throughput without causing green discoloration to soybeans. Keeping the thresher loaded limits grain damage, but may be more difficult in lighter crops where excessive travel speed can increase combine grain loss.
Cleaning shoe
Sieve openings may need to be smaller if corn kernels or soybeans are smaller, but this may increase the amount of grain going to tailings return and increase grain damage as it passes again through the rotor or concave area. Kernel size can also be larger on ears with significantly fewer kernels requiring larger sieve openings. Adequate airflow is necessary for good separation and cleaning, so start near the upper end of fan speed and reduce speed only if necessary to limit lighter weight grain blowing out the rear of the combine.
Safety
Review safety procedures and train everyone involved with harvest. Fire is always a potential with dry, combustible plant material and combine heat sources. Equipment lighting and marking should be checked to ensure safety when moving between fields. Three billion bushels are expected to be removed from Iowa fields during the 2017 harvest season.
Summary
Don’t assume crop conditions. Do a pre-harvest inspection of fields for variability. Be sure to check before harvest with your crop insurer if losses will be claimed. Schedule field harvest based on factors of dry down and pre-harvest loss potential as well as optimizing adjustments required on the combine. Harvest fields with invasive weeds last or clean out the combine between fields. Develop the right attitude and make it a safe harvest. Unscheduled downtime due to accidents or fire is more costly than the taking short breaks to re-charge and rest.
Nebraska State Grange Convention 2017
The annual meeting of the Nebraska State Grange will be held at the Ramada Rivers Edge Inn on the South Side of Columbus, Nebraska, just north of the Bridge, September 8-9-10. 2017.
Friday, at noon, Grangers will meet at Barcel Mill and Lumber Company. Bring your own lunch and a Lawn Chair, and gather under the trees to eat, then have a tour and conversation with B.J. Barcel, about his lumber business.
Convention registration will begin at 7:30 PM, followed by a preliminary look at incoming resolutions to be cinsidered for National or State Grange policy, and ending the day with an evening Ice Cream Social.
Some of the resolutions to be considered are: 1, To keep commodity checkoffs subject to the Freedom of Information Act (FOIA); 2, To require that all Counties in Nebraska enforce noxious weed laws: 3. To make members of Congress and their staff participate in the same healthcare insurance as the general public; 4, To give each public school $1500 per year for each student enrolled K-12, and that each district is to offset their property tax by the same amount they receive in Foundation Aid; 5. To limit Congressional terms to 12 years, and that the current pension plan be discontinued; 6. Require voters to show personal identification to vote.
The Convention will begin Saturday, at 8:30 AM, with a welcome from the city of Columbus, followed by the formal opeining of the Grange, which will be followed by the State President's report from Kevin Cooksley, of Weissert NE. Resolutions for changes-additions in Grange Policy, will be introduced.
The National Representative this year will be Amanda Brozana Rios, Director of Communications and Development. She lives in Greenbelt Md. with her husband, Victor. She has previously taught journalism, public relations, and speech communications at several universities. She will be the speaker for the noon lunch. Joe Fryman, of Blair Ne. will be the MC.
The Deaf Education Awarness Scholarship will go to Evangelina Ortiz, who has been hearing imapired since early childhood. Community Servicce Awards will be presented to local Granges for their projects to improve the area where they live. The Distinguished Service Award will be presented to the Nebraska Rural Response Hotline.
The Annual Banquet will be at 6:30 PM. Kevin Cooksley, President, from Weissert, NE, will be the MC. Dan Holtz will be providing the entertainment. His program is entitled, Nebraska Through Song and Story. He interweaves songs accompanied on guitar and harmonica with excerps from works by Willa Cather, John Neihardt, Mari Sandoz and Bess Streeter Aldirch, in narratives from 1850 to 1904. The program will be followed by an auction of the baked goods chosen as winners, by the judges of the Baking Contest. Other miscellanious items will be auctioned also.
On Sunday morning there will be a memorial service for Grange members who have passed on this year and a brief worship service, planned by State Grange Chaplin, Ricki Wulf, of Blair. State Grange Lecturer (Program Director), Darlene Janing, of Geneva Ne., has asked Jeanne K. Schieffer, from NPPD, to speak to the group, following the service.
Following the Sunday Brunch, Phyllis Tooker, from Ralston, Ne., Family Activities Committee Chairman, will present awards for the Baking and Needlework Contests and give her report on other projects, Stuffed “Toys for Loving”, and the number of Lbs. of pop tabs collected for Ronald McDonald Houses for this year.
The afternoon will be spent finishing up Resolution Committee Reports.
September Farm Finance and Ag Law Clinics
Openings are available for one-on-one, confidential farm finance and ag law consultations being conducted across the state each month. An experienced ag law attorney and ag financial counselor will be available to address farm and ranch issues related to financial planning, estate and transition planning, farm loan programs, debtor/creditor law, water rights, and other relevant matters. The clinics offer an opportunity to seek an experienced outside opinion on issues affecting your farm or ranch.
Clinic Sites and Dates
Valentine — Friday, September 1
Norfolk — Wednesday, September 6
Grand Island — Tuesday, September 19
North Platte — Wednesday, September 20
Norfolk — Tuesday, September 26
Fairbury — Tuesday, September 26
To sign up for a free clinic or to get more information, call Michelle at the Nebraska Farm Hotline at 1-800-464-0258. The Nebraska Department of Agriculture and Legal Aid of Nebraska sponsor these clinics.
Nebraska’s Natural Resources Districts Aim to Assist Public at Husker Harvest Days
Hundreds of Colorado Blue Spruce tree seedlings are currently being prepared and packaged for the Natural Resources Districts (NRDs) to hand out to the public at Husker Harvest Days 2017. The NRD blue building at Lot 1106 will have NRD general managers, NRD staff and several agencies and organizations inside the building, ready to educate anyone interested in conservation methods, grants, cost-share programs, water quality and soil protection this year at the event.
Husker Harvest Days is September 12th – 14th, 2017. Not only will there be free tree seedlings, but the NRDs are also handing out native Prairie Grass seed. The Nebraska Forest Service is displaying a new educational tool they use and several other agencies are planning on handing out useful information for your properties. The Nebraska Department of Health and Human Services is excited to offer free water testing for nitrates. If you’d like to participate, please bring a 2-ounce sample of water from home.
“The Natural Resources Districts want to be present and easily accessible in Nebraskans’ day to day lives,” said Jim Bendfeldt, Nebraska Association of Resources Districts (NARD) board president. “Husker Harvest Days is a fun way to get a face-to-face with the people we want to help.”
On Wednesday Sept. 13th at 11 am, the NRDs are holding a press conference at Lot 1106 to announce three new Hall of Fame inductees. Three special Nebraskans who’ve made significant contributions to protecting Nebraska’s natural resources will be announced for induction into the NRD Hall of Fame. The winners receive the most prestigious awards offered by the NRDs.
The Nebraska Association of Resources Districts (NARD) partners with several other agencies, along with the 23 Natural Resources Districts at Husker Harvest Days. The Nebraska Department of Natural Resources (NDNR), Nebraska Department of Health and Human Services (NHHS), Nebraska Department of Environmental Quality (NDEQ), Nebraska Forest Service (NFS), USDA Natural Resources Conservation Service (NRCS), Platte River Recovery Implementation Program, Rainwater Basin Joint Venture, USDA Nebraska Farm Service Agency (NFSA), and U.S. Forest Service - Bessey Nursery will all be ready to help Husker Harvest Days visitors with water and soil conservation programs and education throughout the three-day event.
ICA pleased with Northey's appointment to USDA
The Iowa Cattlemen's Association is pleased about Iowa Secretary of Agriculture Bill Northey's appointment as undersecretary for farm production and conservation, at the United States Department of Agriculture (USDA). The position is one of three created by new USDA Secretary Sonny Perdue. Northey will oversee the Farm Service Agency, Risk Management Agency and the Natural Resources Conservation Service.
"Secretary Northey has served Iowa farmers well for over ten years, focusing on a balance between production agriculture and conservation efforts like the Iowa Nutrient Reduction Strategy," said Iowa Cattlemen's Association CEO, Matt Deppe. "His accomplishments in Iowa have prepared him well and we are excited to see him continue his work in Washington, DC."
Northey is one of many Iowans who have represented agriculture at the federal level. Former Iowa Governor Tom Vilsack served as Secretary of Agriculture for 8 years during the Obama administration, and Former Governor Terry Branstad was recently appointed as the US Ambassador to China, where he began immediately strengthening the agricultural trade relationship between the two countries.
Corn Farmers Welcome Northey to USDA
The National Corn Growers Association today congratulated Iowa Secretary of Agriculture Bill Northey on his nomination to Undersecretary for Farm Production and Conservation at the U.S. Department of Agriculture.
“Bill Northey is a longtime friend of NCGA and a passionate advocate for farmers. We congratulate him on this well-deserved appointment, and we urge the Senate to move quickly to confirm him,” said NCGA President Wesley Spurlock. “His roots in production agriculture run deep. He will give farmers and ranchers a senior-level voice on important issues such as risk management and conservation programs, especially as we craft the next farm bill.”
Northey is a fourth-generation farmer who grows corn and soybeans near Spirit Lake, Iowa. Throughout his career, he has been a leader in a variety of agricultural groups, including serving as President of the Iowa Corn Growers Association from 1991-92 and President and Chairman of the National Corn Growers Association from 1995-97. In his three terms as Iowa Secretary of Agriculture, he has promoted science- and technology-based solutions to better conserve soil, water, and air, and helped to expand the state’s ethanol infrastructure.
In his new role as USDA Undersecretary of Farm Production and Conservation, Northey will oversee the Farm Service Agency, Risk Management Agency, and the Natural Resources Conservation Service.
“We’re pleased to see another strong, experienced leader nominated in Bill Northey, and we wish him a speedy confirmation process. We also urge the Administration and the Senate to continue filling out the entire USDA leadership team, so that we can move agriculture forward through these challenging times.”
Teaching fall and electrical safety in agriculture: free webinar, Sept. 13
Falls and electricity are among the most common hazards encountered in agriculture. Learn how to educate others about these hazards during an AgriSafe Network Webinar, 3:30 p.m. to 4:30 p.m. (CT), Wednesday, Sept. 13. The webinar is free but attendees must register at http://www.agrisafe.org/live-webinars.
Marsha Salzwedel, M.S., Youth Agricultural Safety Specialist with the National Children’s Center for Rural and Agricultural Health and Safety, will present a full curriculum that is ideal for school agricultural classes, but also adaptable for community events and other educational scenarios.
Salzwedel will explore the different types of falls experienced on farms and how to protect against them, including fall protection systems. She’ll discuss issues associated with electrical hazards and strategies to prevent injuries and fatalities when working around electricity. Salzwedel also will address “Stand T.A.L.L.”, a concept that empowers youth to “Talk, Ask, Learn, Live”, so that they adequately understand work tasks. The session will conclude with a brief overview of other free instructional materials that can be used in combination with the fall and electrical materials to create a more comprehensive agricultural safety program.
USDA Dairy Products July 2017 Production Highlights
Total cheese output (excluding cottage cheese) was 1.03 billion pounds, 1.0 percent above July 2016 but 0.3 percent below June 2017. Italian type cheese production totaled 450 million pounds, 1.2 percent above July 2016 but 0.1 percent below June 2017. American type cheese production totaled 402 million pounds, 0.2 percent above July 2016 but 0.4 percent below June 2017. Butter production was 137 million pounds, 1.6 percent above July 2016 but 2.0 percent below June 2017.
Dry milk powders (comparisons with July 2016)
Nonfat dry milk, human - 148 million pounds, down 1.6 percent.
Skim milk powders - 50.2 million pounds, up 2.9 percent.
Whey products (comparisons with July 2016)
Dry whey, total - 99.2 million pounds, up 21.0 percent.
Lactose, human and animal - 99.3 million pounds, up 1.5 percent.
Whey protein concentrate, total - 41.7 million pounds, up 8.5 percent.
Frozen products (comparisons with July 2016)
Ice cream, regular (hard) - 70.6 million gallons, down 1.7 percent.
Ice cream, lowfat (total) - 42.5 million gallons, up 3.4 percent.
Sherbet (hard) - 2.97 million gallons, down 5.3 percent.
Frozen yogurt (total) - 5.43 million gallons, down 4.3 percent.
CWT Assists with 793,664 Pounds of Cheese Export Sales
Cooperatives Working Together (CWT) has accepted 10 requests for export assistance from member cooperatives that have contracts to sell 793,664 pounds (360 metric tons) of Cheddar and Monterey Jack cheese to customers in Asia. The product has been contracted for delivery in the period from September through November 2017.
Through August this year, CWT has assisted member cooperatives who have contracts to sell 48.307 million pounds of American-type cheeses, and 3.013 million pounds of butter (82% milkfat) to 18 countries on five continents. The sales are the equivalent of 513.654 million pounds of milk on a milkfat basis.
Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.
Strong Chicken Demand Prompts Tyson Foods to Expand Production
In response to strong consumer demand for chicken, Tyson Foods, Inc. (NYSE: TSN) today announced plans to build a $320 million poultry complex in eastern Kansas.
The company will construct a processing plant, hatchery and feed mill near the city of Tonganoxie, in Leavenworth County, which will employ approximately 1,600 people and contract with northeast Kansas farmers and ranchers to raise chickens. The operation, currently scheduled to begin production in mid-2019, will produce pre-packaged trays of fresh chicken for retail grocery stores nationwide.
“More people want fresh food and as one of the world’s leading protein companies, we’re well-positioned to provide it,” said Tom Hayes, president and CEO of Tyson Foods. “We believe this new operation, which will incorporate the latest production technology, will enable us to meet the sustained growth in consumer demand for fresh chicken.”
The poultry plant will be capable of processing 1.25 million birds per week, increasing Tyson Foods’ overall production capacity. The payroll and payments to farmers from the new operation, along with its purchase of grain and utilities, is expected to generate an annual economic benefit to the state of Kansas of $150 million.
“Kansas will be an outstanding home for this Tyson complex,” said Governor Sam Brownback. “Growing Kansas means we must grow the food and agriculture sector which accounts for nearly 45 percent of the state’s economy. The far-reaching impact of this development will be felt by farmers, ranchers, agribusinesses and communities throughout eastern Kansas. This is a step in the right direction to further diversify and grow our state’s economy.”
The Governor emphasized the importance of local-level support for economic development. “Kansas is known throughout the world for our commitment to animal agriculture and for our communities which offer an exceptional place for companies of this quality to find a talented workforce in a business-friendly environment.”
“Tonganoxie is looking forward to a successful partnership with Tyson Foods,” said Tonganoxie Mayor Jason Ward. “We have planned for a development of this type for many years by making strategic investments in public infrastructure targeted to support future industrial growth. This project will bring much anticipated opportunities for local residents to enjoy the quality of life benefit of working close to home. Tyson has a long history of support for small towns and local markets. They will be a great fit for our community.”
“The Leavenworth County Board of Commissioners is excited that Tyson Foods will be opening a state-of-the-art poultry processing facility in southern Leavenworth County,” said Mark Loughry, Leavenworth County administrator. “This represents a significant investment by Tyson and creates new jobs at the plant for our citizens. More than that, it provides an opportunity for area ag producers that was previously unheard of in Kansas.”
“We believe eastern Kansas is the right location because of the availability of grain and labor, as well as access to our nationwide customer base that is accessible through the state’s top-notch transportation network,” said Doug Ramsey, group president of Poultry for Tyson Foods. “We’re grateful for the tremendous support we’ve received for this project from Governor Brownback, as well as leaders from the City of Tonganoxie, Leavenworth County, the Leavenworth County Development Corporation, and a host of other city, county and state officials.”
Tyson Foods anticipates purchasing about 300 acres of property south of Tonganoxie and currently plans to break ground sometime this fall. The company will work with outside contractors to build the plant, hatchery, feed mill and related infrastructure and expects the construction project to involve hundreds of workers. Farmers and ranchers who have interest in raising chickens for the new poultry complex are encouraged to go to www.growwithtyson.com for more information.
Earlier this year, Tyson Foods announced it was moving to No Antibiotics Ever (NAE) in its Tyson® branded retail chicken products, making it the world’s largest producer of NAE. The Tonganoxie plant will be part of the continued expansion of the company’s NAE offerings.
Tyson Foods currently operates facilities in six Kansas communities, employing about 5,700 in the state with an annual payroll of more than $210 million. In its 2016 fiscal year, Tyson Foods paid Kansas cattle suppliers more than $2 billion and hog suppliers more than $1.3 million. The company estimates its total statewide annual impact for fiscal 2016, including grain purchases, utilities, property taxes and charitable contributions to be more than $2.4 billion.
DowDuPont™ Merger Successfully Completed
DowDuPont™ (NYSE:DWDP) today announced the successful completion of the merger of equals between The Dow Chemical Company (“Dow”) and E.I. du Pont de Nemours & Company (“DuPont”), effective Aug. 31, 2017. The combined entity is operating as a holding company under the name “DowDuPont™” with three divisions – Agriculture, Materials Science and Specialty Products.
Shares of DuPont and Dow ceased trading at the close of the New York Stock Exchange (NYSE) on Aug. 31, 2017. Beginning today, DowDuPont will start trading on the New York Stock Exchange under the stock ticker symbol “DWDP.” Pursuant to the merger agreement, Dow shareholders received a fixed exchange ratio of 1.00 share of DowDuPont for each Dow share, and DuPont shareholders received a fixed exchange ratio of 1.282 shares of DowDuPont for each DuPont share.
“Today marks a significant milestone in the storied histories of our two companies,” said Andrew Liveris, executive chairman of DowDuPont. “We are extremely excited to complete this transformational merger and move forward to create three intended industry-leading, independent, publicly traded companies. While our collective heritage and strength are impressive, the true value of this merger lies in the intended creation of three industry powerhouses that will define their markets and drive growth for the benefit of all stakeholders. Our teams have been working for more than a year on integration planning, and -- as of today -- we will hit the ground running on executing those plans with an intention to complete the separations as quickly as possible.”
“For shareholders, customers and employees, closing this transaction is a definitive step toward unlocking higher value and greater opportunities through a future built on sustainable growth and innovation,” said Ed Breen, chief executive officer of DowDuPont. “DowDuPont is a launching pad for three intended strong companies that will be better positioned to reinvest in science and innovation, solve our customers’ ever-evolving challenges, and generate long-term returns for our shareholders. With the merger now complete, our focus is on finalizing the organizational structures that will be the foundations of these three intended strong companies and capturing the synergies to unlock value. With clear focus, market visibility and more productive R&D, each intended company will be equipped to compete successfully as an industry leader.”
Board and Governance
The Board of Directors of DowDuPont comprises 16 members – eight directors formerly on the DuPont Board and eight directors formerly on the Dow Board. There are two lead directors: Jeffrey Fettig, who previously served as the lead independent director for Dow; and Alexander Cutler, who previously served as the lead independent director for DuPont. Liveris serves as the executive chairman of the Board and Breen also serves on the Board. Other Board members include:
From Dow:
James A. Bell, Former Chief Financial Officer, Boeing
Raymond J. Milchovich, Former Chairman and CEO, Foster Wheeler AG
Paul Polman, CEO, Unilever PLC and Unilever N.V.
Dennis H. Reilley, Non-Executive Chairman, Marathon Oil Corp.
James M. Ringler, Chairman, Teradata Corporation
Ruth G. Shaw, Former Group Executive, Public Policy and President, Duke Nuclear
From DuPont:
Lamberto Andreotti, Former Chair of the Board and CEO of Bristol-Myers Squibb Company
Robert A. Brown, President of Boston University
Marillyn A. Hewson, Chairman, President, and Chief Executive Officer of Lockheed Martin Corporation
Lois D. Juliber, Former Vice Chairman and Chief Operating Officer of Colgate-Palmolive Company
Lee M. Thomas, Former Chairman and Chief Executive Officer of Rayonier Inc.
Patrick J. Ward, Chief Financial Officer of Cummins, Inc.
Three Advisory Committees have been established by the DowDuPont Board, chartered to generally oversee the establishment of each of the Agriculture, Materials Science (Dow) and Specialty Products divisions in preparation for the separations. Additionally, each Advisory Committee will develop a capital structure in accordance with the guiding principles set forth in the Bylaws, and designate the future chief executive officer and leadership team of its respective intended company.
DowDuPont Officers
As previously announced, DowDuPont will be led by a proven leadership team that reflects the strengths and capabilities of both companies. Along with Liveris and Breen, it includes the following executives:
Howard Ungerleider, Chief Financial Officer
Stacy Fox, General Counsel and Corporate Secretary
Charles J. Kalil, Special Counsellor to the Executive Chairman, General Counsel for the Materials Science Division
James C. Collins, Jr., Chief Operating Officer for the Agriculture Division
Jim Fitterling, Chief Operating Officer for the Materials Science Division
Marc Doyle, Chief Operating Officer for the Specialty Products Division
Unlocking Value for All Stakeholders
By merging the highly complementary portfolios of Dow and DuPont and subsequently creating intended industry leaders, DowDuPont expects to maximize value for all its stakeholders.
Shareholders are expected to benefit from the stronger, focused investment profile of each intended company and substantial cost synergies, as well as from long-term growth and sustainable value creation following the intended separations into three independent companies. The transaction is expected to result in run-rate cost synergies of approximately $3 billion and the potential for approximately $1 billion in growth synergies. The company expects to reach 100 percent run rate on the cost synergies within the first 24 months of merger closing.
Customers will benefit from superior solutions and expanded product offerings. By combining the complementary strengths of Dow and DuPont, each intended company will be able to respond faster and more effectively to rapidly changing conditions with innovative products and greater choice.
Employees will benefit from being part of these intended highly focused and competitive industry-leaders, built for sustainable, long-term growth – which will create opportunities for our businesses and opportunities for our people.
Paths to Separation
Dow and DuPont leaders and integration teams are developing the future state operating models and organizational designs that will support the refined strategy of each intended company. Once each division has its own processes, people, assets, systems and licenses in place to operate independently from the parent company, DowDuPont intends to separate the divisions to stand within their own legal entities, subject to Board approval and any regulatory approvals. The intended separations are expected to occur within 18 months.
The intended companies are expected to include:
A leading Agriculture Company that brings together the strengths of DuPont Pioneer, DuPont Crop Protection and Dow AgroSciences to better serve growers around the world with a superior portfolio of solutions, greater choice and competitive price for value. The combined capabilities and highly productive innovation engine will enable the intended Agriculture Company to bring a broader suite of products to the market faster, so it can be an even better partner to growers, delivering innovation and helping them to increase their productivity and profitability. The intended Agriculture Company will be headquartered in Wilmington, Delaware, with global business centers in Johnston, Iowa, and Indianapolis, Indiana.
A leading Materials Science Company, to be named Dow that will consist of the businesses comprising the following current Dow operating segments: Performance Plastics, Performance Materials & Chemicals, Infrastructure Solutions and Consumer Solutions (Consumer Care and Dow Automotive Systems; Dow Electronic Materials is intended to go to the Specialty Products Company), as well as DuPont’s current Performance Materials operating segment. The intended Materials Science Company will offer the strongest and broadest chemistry and polymers toolkit in the industry, with the scale and competitive capabilities to enable truly differentiated solutions for customers in high-growth end markets, including packaging, transportation, infrastructure and consumer care. The intended Materials Science Company will be headquartered in Midland, Michigan.
A leading Specialty Products Company that will consist of powerful, market-leading businesses including DuPont Protection Solutions, Sustainable Solutions, Industrial Biosciences and Nutrition & Health, which will integrate the Health and Nutrition business from FMC pending the close of that transaction; as well as Electronic Technologies, which combines DuPont’s Electronics & Communications business with Dow’s Electronic Materials business unit. The intended Specialty Products Company will be an innovation leader composed of technology-driven specialty businesses with highly differentiated products and solutions that transform industries and everyday life. The intended Specialty Products Company will be headquartered in Wilmington, Delaware.
As announced, the DowDuPont Board is conducting a comprehensive portfolio review to assess current business facts and leverage the knowledge gained over the past year and a half to capture any material value-enhancing opportunities in preparation for the intended creation of industry-leading companies.
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